PROMOTE PROFOUND, ORGANIC GROWTH OF YOUR BUSINESS WITH OKRs

What is OKR Methodology?

The Objectives and Key Results method, introduced by Andy Grove, is a process where employees and managers come together and define the goals and create a road map on how to achieve them. OKR is considered one of the most prominent and forward-thinking management methods today.

This method, which was implemented for the first time by Intel, was designed to replace other management methods where managers and employees were enabled to receive bonuses by choosing achievable targets. Additionally, it has been observed that the micro management style, where the managers constantly tell the employees what, in what order, and how do not focus on the issues such as strategy and improvement of the work. It was also observed that an environment in which the strategy was discussed only by the senior management did not contribute to employee engagement, causing serious difficulties in implementation. OKR was designed to address all three of these problems as a straightforward, comprehensive system of setting and achieving goals.

How OKRs Work

OKRs are built on more frequent (quarterly) targets, and are aligned and prioritized according to the company mission. An employee who can see the OKRs of both the top manager and all other colleagues sees how his work fits into the big picture. Clearly defined goals of an organization make it easy to see this big picture and which areas the company is currently focusing on.

OKRs help streamline cooperation and alignment between teams and employees. This is because goals and objectives of teams are designed to support the goals and objectives of the company. OKRs have the nature of a contract between the organization and employees, and increase their accountability thanks to their transparency.

OKR Main Components

Objectives and Key Results consist of 3 main parts.

Objective

It determines what is desired to be achieved. It should be qualified and inspiring, it should not contain numerical data. It should encourage and exhilarate people when they hear them. It should be restricted to a certain time period, it should be realistic, and it should be possible to complete it in the defined time period. It should also be difficult, be able to encourage and motivate the team that will bring it to life.

Some objective examples:

• Increase user base
• Make transportation scalable
• Enter the European market

Key Results

Key Results are the criteria that would indicate success in achieving the objectives. They must be numerical, measurable and traceable.

• Increase conversion rates by 25%
• Increase online sales by 35%
• Open 3 New Stores

Assignments

Activities, projects and tasks to be carried out to achieve the goals. The fulfillment of these tasks alone is not enough. The important thing is whether the results of key criteria can be achieved.

OKR Types

There are 4 types of OKR.

• Company OKRs
• Unit OKRs
• Team OKRs
• Personal OKRs

Depending on the size and structure of the institution, one or both unit or team goals can be used.

Other OKR Benefits

•  Vision of where you want to get
•  Know what's expected of you
•  Guide people towards right path
•  One direction everyone works towards
•  Transparency and accountability of goals
•  Productivity - OKRs help you measure and envision what success looks like
•  Clear communication and alignment
•  Simple and flexible
•  Avoid a set it and forget it mindset